Okay so you’ve found the perfect home and negotiated a ”great deal”, now what?
Part and parcel of a “great deal” is the opportunity for purchasers to back out if issues are discovered as a result of inspections and attorney review of documentation
All “great deals” include an opportunity for buyers to have professional 
inspectors inspect the physical and environmental aspects of the property and to have an attorney review the contract language, title evidence, and association rules and bylaws. The inspections and reviews must occure within certain time frames detailed in the contract. If the tasks outlined in the contract are not completed within the time frames outlined in the contract, the contract is usually voidable by either party by written notice to the other at which time the Earnest Money Deposit is usually fully refundable.
My purchasers have all the following checked out by professional inspectors and legal consul as an intregal part of the buying process.
- A Contractor’s, Pest, Radon, Mold, Lead Based Paint (Well and Septic, if not city water and sewer) inspections take place and are performed by professional inspectors and written reports are prepared by the inspectors and once the purchasers have had a chance to review the inspection results and get any questions answered by the appropriate professionals and assuming the purchers are satisfied with the inspections results and no major issues are discovered and further negotiation isn’t required, “Contingency Removal” forms, one for each contingency, is signed formally removing the inspection contingencies.
- An Attorney review of Contract Language, Attorney Review of Title Evidence, Attorney Review of Association Rules and Bylaws occures and assuming that all is well with these documents, the purchaser’s attorney gives the purchaser the go ahead to sign off on these contingencies.
- Prior to the Finance Contingency being removed an appraisal will is made of the property by the lender. The lender requires a formal appraisal to confirm the value of the home, as the home itself is used as collateral to secure the loan. Assuming that the home appriases for at least the purchase price a buyer is well advised to sign off on the finance contingency thereby removing the finance contingency. Once this occures, the closing is scheduled, in Michigan, usually at a Title Company whose profession it is to organize and conduct the closing.
- All parties, Purchaser, Seller, Buyer’s Agent, Seller’s Agent, Title Company Representative, Banker, and in some cases, the buyer and seller attornies get together at the title company on a date and time mutually agreed upon by all parties to sign all the loan and closing documentation. Once all these dosuments are signed and funds are exchanged, the sellers hand over the keys to the buyer and the buyers usually begin thier move in.
There are many opportunities for surprises or delays in the transaction. Part of my expertise is troubleshooting problems that may arise. Please contact me if you have any questions or you would like more information.
